On Friday, the USD/JPY currency pair re-tested the monthly PP at 106.09. During today’s morning, the pair was testing the 100-hour SMA near 105.70.
If the given moving average holds, it is likely that a reversal north could occur, and the exchange rate could target the psychological level at 106.40.
Meanwhile, if the predetermined resistance holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short run.
Also, it is unlikely that the rate could decline below the 105.40 mark due to the lower boundary of a medium-term ascending channel.
